[Congressional Record Volume 147, Number 177 (Wednesday, December 19, 2001)]
[Senate]
[Pages S13673-S13674]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      TRAVEL AND TOURISM INDUSTRY

  Mr. REID. Madam President, as we approach the end of this first 
session of the 107th Congress, there are many significant legislative 
achievements of which we should be proud. In the wake of the terrorist 
attacks of September 11, Democrats and Republicans, Senators and 
Representatives, came together in a bipartisan, bicameral fashion to 
pass a resolution authorizing the President to use military force in 
the war against terrorism.
  Then we immediately appropriated, on a bipartisan basis, $40 billion 
in emergency funds to help fight the war against terror and aid in our 
ongoing recovery, cleanup, and rebuilding efforts in New York, 
Washington, and Pennsylvania.
  We came together to pass antiterrorism legislation, the USA Patriot 
Act, that will provide law enforcement in this country with the 
necessary tools to fight terrorism at home and abroad.
  In an effort to improve our homeland security, we also passed 
important legislation that will dramatically improve the security of 
our Nation's airports.
  We passed these initiatives and other legislation because we made a 
commitment to set aside bipartisan bickering and devote the collective 
efforts of this Congress toward working on behalf of the best interests 
of the American people.
  I was asked recently by a member of the press how far bipartisanship 
should go during wartime and whether it should apply only to military 
matters.
  I responded that bipartisanship should apply at all times, in peace 
and, of course, in war. Unfortunately, it seems our commitment to 
bipartisanship has been unable to produce an economic stimulus package 
that our economy and so many American working families desperately 
need.
  As I am speaking, I see the chairman of the Finance Committee, Mr. 
Baucus, the senior Senator from Montana. He has made a valiant effort. 
There is still a glimmer of hope maybe something can be done, but he 
has made a valiant effort. He has worked for weeks to come up with an 
economic recovery package. It is too bad his efforts have not been 
rewarded with some bipartisan legislation in keeping with some of the 
things I have outlined that we have been able to accomplish.
  We need to pass an economic stimulus package before the end of this 
session that would extend unemployment and health benefits for the 
hundreds of thousands and even millions of Americans who have lost 
their jobs since the recession started in March. We need to pass an 
economic stimulus package that will provide much needed relief for the 
American businesses that have been hit hard by the downturn in the 
economy.
  An economic stimulus package is also important because we need to 
address one sector of the American economy that has suffered more than 
any other as a direct result of the terrorist attacks of September 11: 
the travel and tourism industry. It would be wrong for this Congress to 
adjourn for the year without doing something to address what has 
happened to the American travel and tourism industry since that fateful 
day in September.
  Prior to September 11, the travel and tourism industry employed more 
than 18 million people with an annual payroll of almost $160 billion. 
In 30 States, tourism is the No. 1, No. 2, or No. 3 industry. It is 
estimated that travel and tourism generated $93 billion in tax revenues 
during the year 2000 for State, Federal, and local governments. When 
our Governors and other State officials find themselves strapped for 
cash to pay for basic services such as education, $93 billion in tax 
revenue becomes even more significant. Moreover, during the past 
decade, travel and tourism has emerged as the Nation's second largest 
services export, generating an annual trade surplus of about $14 
billion. This, of course, is no surprise to the people and workers of 
Nevada where travel and tourism is by far the largest industry.
  In the year 2000, 36 million people visited Las Vegas, contributing 
approximately $32 billion to local economies and sustaining 
approximately 200,000 hospitality and tourism-related jobs. Since 
September 11, these impressive numbers have declined. According to the 
Hotel and Restaurant Employees International Union, 41 percent of hotel 
and restaurant employees in the Washington, DC, metropolitan area have 
been laid off. In Washington, DC, 41 percent of hotel and restaurant 
employees have been laid off.
  In Las Vegas, the fastest growing metropolitan community in the 
United States, 30 percent of the hotel and restaurant employees have 
lost their jobs. Similar cuts have been seen in other cities throughout 
the country, including New York, San Francisco, Boston, Los Angeles, 
Honolulu, and Miami.
  Jonathan Tisch, one of the premier businessmen in the world, has told 
me on many occasions--he is based in New York--how drastic September 11 
has been to his business. I spoke yesterday to Barry Sternly, another 
fine, outstanding businessman in American today. The tourism industry, 
the hotel business in which he is involved, has suffered 
tremendously. Around the country, 450,000 jobs directly related to 
travel and tourism will be lost this year. Think of those jobs that 
will be indirectly affected as a result of what has happened since 
September 11.

  The forecast for the industry from this point on is not much better. 
The Travel Industry of America estimates travel by Americans will 
decrease by 8.4 percent this winter compared to the 3 months of 
December, January, and February a year ago.
  These months are always down months, but they are drastically down 
now. Many hotels use these months to do renovations and things they can 
afford to do with the money they would normally have earned in the 
other months, but they did not make money as they anticipated they 
would in the months of October and November, which are normally very 
good months for them. So with the decline of 3.5 percent for the entire 
year 2001 when compared to the year 2000, the Travel Industry of 
America estimates it will result in nearly $43 billion in lost travel 
expenditures in 1 year.
  Even more chilling, the International Labor Organization projects up 
to 3.8 million jobs related to the American travel and tourism industry 
could be lost in the next few years--$43 billion and almost 4 million 
jobs. How can we possibly consider leaving without doing something to 
address this critical sector of the economy?

[[Page S13674]]

  Certainly there should be bipartisan support for tourism since it is 
so important in so many States, whether it is the State of Montana, the 
State of Michigan, the State of Nevada, or the State of Iowa. Tourism 
is important in all of these States, and I mention them because I see 
their Senators in the Chamber today. How can we possibly consider 
adjourning without doing something to help the hundreds of thousands of 
people who have already lost their jobs and do something so that 
millions more will not lose their jobs? How can we possibly discuss an 
economic recovery package without addressing the needs of travel and 
tourism? I say if we do nothing except something related to tourism, we 
will be doing a good job. It has such an important impact on our 
economies.
  Since September 11, I, with a number of other Senators, have come to 
the Senate floor on various occasions to urge action on a travel and 
tourism package in conjunction with the so-called economic stimulus 
plan. We have urged our colleagues in the Senate, the House, and the 
administration to include legislation that will encourage people to 
start traveling again in order to stimulate the economy and get workers 
back on the job. We have taken some important first steps.
  A few days after September 11, Congress acted quickly and responsibly 
to enact crucial legislation to help stabilize our Nation's airline 
industry with $15 billion in grants and loans. Since September 11, the 
airline industry has cut 20 percent of its flights and laid off more 
than 100,000 workers. The financial package for the airline industry 
was the right thing to do, but it was just the first step toward making 
sure travelers truly feel safe to fly.
  We then passed a comprehensive airline security bill to dramatically 
increase the number of sky marshals, strengthen cockpit doors, and 
federalize the screening of passengers and luggage at our Nation's 
airports.
  While we were right to enact these measures, it is important for us 
to remember travel and tourism in this country entails so much more 
than just the airline industry. Travel and tourism has many different 
faces: Hotels, car rental agencies, cruise ships, theme parks, resorts, 
credit card companies, family-run restaurants, big city convention 
centers, tour operators and travel agencies. These are just some of the 
many diverse elements of an industry that in some way reaches every 
State, virtually every community in America.
  More importantly, it is from these nonairline sectors of the travel 
and tourism industry that the vast majority of the jobs have been lost. 
That is why I proposed a comprehensive travel and tourism package as 
part of any economic stimulus plan we would consider.
  There are many Senators who have been interested in travel and 
tourism, but I would specifically mention Senators Conrad, Dorgan, 
Inouye, Kyl, Bill Nelson, Boxer, Miller, Akaka, Schumer, Clinton, 
Ensign, Allen, Stevens, and there are many others.
  My plan calls upon Congress to enact tax credits for leisure travel 
to encourage Americans to get back on the airlines, to rent a car, to 
stay a few nights at their favorite hotel or enjoy a few meals at their 
favorite restaurants. The tax cuts would be temporary and would provide 
immediate results. Travel tax credits would encourage people to take 
advantage of all the many wonderful things the travel and tourism 
industry in this country has to offer while at the same time spending 
much needed dollars to stimulate the economy.
  My plan also calls for a temporary increase in the deduction for 
business meals and entertainment expenses.
  This proposal will encourage businesses to increase their 
entertainment expenses. And, because the average expensed business meal 
is less than $20, this proposal will assist small businesses. This 
proposal by itself will have an enormous and positive impact on our 
Nation's restaurants and the millions of Americans they employ.
  We need to address the needs of our nonairline travel business such 
as rental car companies, hotels, travel agencies, airport 
concessionaires, to name only a few. These businesses need our help. My 
plan will provide a financial package of loan guarantees similar to 
that for the airline industry. Finally, we need to do a better job of 
promoting tourism at home and abroad by establishing a Presidential 
advisory council on travel and tourism to assist in the development of 
a coherent and comprehensive national tourism policy designed to help 
strengthen the travel and tourism industry. My plan provides for the 
necessary funds to help carry out this mission. We need to make sure 
that this country advertises the great tourism attractions in Florida, 
New York, Michigan, California, and Nevada. Most other countries spend 
significant amounts of money advertising tourism. We see advertisements 
on television and radio all the time. Australia, New Zealand, and other 
countries advertise and promote tourism to their countries. We need to 
do the same for America.
  The travel and tourism industry is too important to our Nation's 
economy, too important to my State and other States and communities 
throughout the country to be ignored. I hope everyone understands the 
importance of travel and tourism and how important it is to our 
country.
  I have a letter from the former majority leader of the Senate, George 
Mitchell. The letter says:

       I know how hectic these days are for you and so I will be 
     very brief.
       Some of the people who were most adversely affected by the 
     events of September 11 are the working poor. Welfare reform 
     in the 1990s forced them into the job market, and 
     fortunately, many found work in the travel and tourism 
     industry. Many have lost their job or face unemployment 
     unless we can get the industry moving again.
       By embracing the travel credit, [we] can keep the focus of 
     the economic stimulus bill on individuals and on doing 
     everything we can to help the working poor stay in the job 
     market.

  I also have a letter addressed to me from the chair and chief 
executive officer of the Carlson Group, one of our nation's largest 
travel agencies. I ask unanimous consent it be printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                December 18, 2001.
     Hon. Harry Reid,
     Assistant Majority Leader of the Senate,
     The Capitol, Washington, DC.
       Dear Senator Reid: I cannot tell you how dismayed I was to 
     read the article in the Washington Post, today, concerning 
     the impact of September 11th on the travel and tourism 
     industry.
       As I am sure your constituents have told you, domestic air 
     travel has remained down 31% for the past seven weeks. All 
     elements of the travel and hospitality industry dependent on 
     air travelers have watched their revenue drop by at least 
     this amount.
       Since personal travel is down 37-40%, tourist destinations, 
     resorts, cruise ships, and many other segments of the 
     American travel and hospitality industry have suffered 
     declines as much as 60% over the same period and it 
     continues.
       We believe that a personal travel credit and elimination of 
     the 50% penalty on business meals and entertainment expenses 
     are desperately needed to keep Americans employed.
       Obviously, being employed is far superior to receiving 
     unemployment compensation and far more beneficial to our 
     wonderful people and their families and the states, which 
     bear the burden of such unemployment costs.
       To the extent some in the industry seem to suggest that 
     such assistance is too expensive or impracticable, they are 
     not speaking for our people, our franchisees, our company and 
     many others who have been the casualties of the fallout from 
     9/11.
       We know that you understand this. We deeply appreciate your 
     efforts and those of your colleagues, in particular Senators 
     Jon Kyl and Bill Nelson, to help our employees and our 
     businesses regain their economic footing through an amendment 
     to the stimulus bill.
           Best Regards,
                                           Marilyn Carlson Nelson,
                                Chair and Chief Executive Officer.

  The PRESIDING OFFICER. The Senator from Montana.

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